Chapter 6 Class Notes

Contents of Chapter 6 Class Notes
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What is Consumer Buying Behavior? Stages of Consumer Buying Behavior? Types of Consumer Buying Behavior. Categories That Effect Consumer Buying Behavior.
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Personal Psychological Social

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What is Consumer Buying Behavior?
Definition of Buying Behavior: Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand:
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why consumers make the purchases that they make? what factors influence consumer purchases? the changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for: • Buyers reactions to a firms marketing strategy has a great impact on the firms success. • The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

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Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. The 6 stages are: 1. Problem Recognition(awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. 2. Information search-o o

Internal search, memory. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is
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chinese food indian food burger king klondike kates etc

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, indian gets highest rank etc. If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. 4. Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase--May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after

High degree of economic/performance/psychological risk. may think that really you wanted a chinese meal instead.. This helps reduce cognitive dissonance when a marketer can answer any concerns of a new consumer. homes. Types of risk: • Personal risk • Social risk • Economic risk The four type of consumer buying behavior are: • Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items. and the higher the risk the higher the involvement. Examples include soft drinks. need very little search and decision effort. purchased almost automatically. unfamiliar. Spend alot of time seeking information and deciding. snack foods. education. Product can shift from one category to the next. Information from the companies MM. Go through all six stages of the buying process. milk etc.. store personnel etc. perhaps. friends and relatives. • Extensive Decision Making/Complex high involvement. After eating an indian meal. For example: Going out for dinner for one person may be extensive decision making (for someone that does . High involvement purchases--Honda Motorbike. computers. Importance and intensity of interest in a product in a particular situation.Pillsbury 1-800#s 1-800 #s gives the consumer a way of communicating with the marketer after purchase.sales communication etc. • Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. high priced goods. expensive and/or infrequently bought products. products visible to others. Handout. Examples include cars. no conscious planning. • Limited Decision Making--buying product occasionally. Requires a moderate amount of time for information gathering. Impulse buying. Examples include Clothes--know product class but not the brand. • The purchase of the same product does not always elicit the same Buying Behavior. Return to Contents List Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: • Level of Involvement in purchase decision. When you need to obtain information about unfamiliar brand in a familiar product category.

Sex. The reason for the dinner. or a meal with a couple of friends will also determine the extent of the decision making.. If marketers can identify motives then they can better develop a marketing mix. Personal 2.not go out often at all). Actions are effected by a set of motives. Race. Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market. Who in the family is responsible for the decision making. making a purchase decision will be affected by the following three factors: 1. not just one. Return to Contents List Personal Unique to a particular person. MASLOW hierarchy of needs!! o o Physiological Safety . Psychological 3. Highlights the differences between male and female shoppers in the supermarket. but limited decision making for someone else. Return to Contents List Psychological factors Psychological factors include: • Motives-A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Demographic Factors..From choices to checkout. whether it is an anniversary celebration. Young people purchase things for different reasons than older people.. Handout.. Return to Contents List Categories that Effect the Consumer Buying Decision Process A consumer. Age etc.

Selective Exposure-select inputs to be exposed to our awareness. The product was not selling well. Information inputs are the sensations received through sight. have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor.MCI and AT&T. a fitness drink. BM-S therefore had to redesign its MM to better meet the needs of this target market. More likely if it is linked to an event. • Perception-What do you see?? Perception is the process of selecting. organize it and interpret it. organizing and interpreting information inputs to produce meaning. Advertisers that use comparative advertisements (pitching one product against another). Average supermarket shopper is exposed to 17.. taste. IE we chose what info we pay attention to.. satisfies current needs. Nutrament. inconsistent with beliefs. Their motivation to purchase was completely different to the motivation that B-MS had originally thought.o o o Love and Belonging Esteem Self Actualization Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases.... These consumers were at the Physiological level of the hierarchy. hearing. They would purchase Nutrament as a substitute for a meal. Motives often operate at a subconscious level therefore are difficult to measure..Nutrament you ever get confused? Selective Retention-Remember inputs that support beliefs..000 products in a shopping visit lasting 30 . forgets those that don't.. It was therefore targeted at consumers whose needs were for either love and Belonging or esteem. It was determined that the consumers for the product were actually drug addicts who couldn't not digest a regular meal. Selective Distortion-Changing/twisting current received information. A current example. and was almost terminated. intensity of input changes (sharp price drop). Handout. smell and touch. a product marketed by Bristol-Myers Squibb originally was targeted at consumers that needed to receive additional energy from their drinks after exercise etc.. Upon extensive research it was determined that the product did sell well in inner-city convenience stores.

.. buyers must process information. Exposed to 1. Non-alcoholic Beer example: consumers chose the most expensive six-pack. Learning. • Ability and Knowledge-Need to understand individuals capacity to learn. Handout. Consumers have strong perceptions of the country. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product... Therefore to change consumers' behavior about your product. Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior..minutes-60% of purchases are unplanned. Problems marketing wine from South Africa. Can't be expected to be aware of all these inputs.. Lexus.. South Africa. • Attitudes-Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible. changes in a person's behavior caused by information and experience. and hence its products. because they assume that the greater price indicates greater bottle of wine and pour it!! Also educate american consumers about changes in SA.. sample etc.Oldsmobile... Oldsmobile vs. Handout.South Africa wine... due to consumers attitudes toward Oldsmobile (as discovered by class exercise) need to disassociate Aurora from the Oldsmobile name. living or non. When making buying decisions.500 advertisement per day. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. on knowledge that is stored in the memory. Interpreting information is based on what is already familiar.. and certainly will not retain many.. Knowledge is the familiarity with the product and expertise. Need to sell a whole new country. need to give them new information re: product.Drive perceptions Individual learns attitudes through experience and interaction with other

Hondas market returning to hard core. There is a difference between attitude and intention to buy (ability to buy).Exxon Valdez-nearly 20. baby boomers aging. Attitudes and attitude change are influenced by consumers personality and lifestyle. late 1950s. Traits effect the way people behave. Distort information to make it consistent and selectively retain information that reinforces our attitudes. Changing market of the 1990s. Marketers try to match the store image to the perceived image of their customers. uniqueness arrives from a person's heredity and personal experience. IE brand loyalty. . To change this they have a new slogan "Come ride with us". • Personality-all the internal traits and behaviors that make a person unique. dispel the unsavory image of a motorbike rider. Consumers screen information that conflicts with their attitudes. Examples include: o o o o o o o o o o o o Workaholism Compulsiveness Self confidence Friendliness Adaptability Ambitiousness Dogmatism Authoritarianism Introversion Extroversion Aggressiveness Competitiveness. Honda "You meet the nicest people on a Honda".000 credit cards were returned or cut-up after the tragic oil spill.

EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. are influenced by opinion leaders. complete the survey and Email alex@udel.. Individuals role are continuing to change therefore marketers must continue to update information. learning. Nike ads.they actually use (pay) spokespeople to market their products.. Return to Contents List Social Factors Consumer wants. McDonalds. motives etc.Michael the results.There is a weak association between personality and Buying Behavior. person's family.. this may be due to unreliable measures. Gatorade etc... Now an assault by the American Academy of Dermatology. This is a survey tool that marketers can use to better understand their target market(s)..Chevy Chase • Roles and Family Influences-Role... natural lifestyle.. Family is the most basic group a person belongs to. Michael Jordon (Nike. to access Value and Lifestyles (VALS) Program. Handout. reference groups. • Lifestyles-Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy. Extra credit assignment from the news group.Here Comes the Sun to Confound Health Savvy Lotion Makers. People have many roles.OJ Simpson. Lifestyles are the consistent patterns people follow in their lives. • Opinion leaders-Spokespeople etc.. Husband. Marketers must understand: o o that many family decisions are made by the family unit consumer behavior starts in the family unit ..) Can be risky.things you should do based on the expectations of you from your position within a group... social class and culture. employer/ee. Marketers try to attract opinion leaders. father. Consumers buy products that are consistent with their self concept.

older married couples with dependant children empty nest I.most of BUAD301 newly married. youngest child 6 or over full nest III. youngest child under 6 full nest II.o family roles and preferences are the model for children's future family (can reject/alter/etc) family buying decisions are a mixture of family interactions and individual decision making family acts an interpreter of social and cultural values for the individual. older married couples. • Reference Groups-Individual identifies with the group to the extent that he takes on many of the values. Families. (Children influence about $130 billion of goods in a year) Children also have more money to spend themselves.. o o o o Handout... friends.also. older married couples with no children living with them. head in labor force empty nest II.Two Income Marriages Are Now the Norm Because 2 income families are becoming more common. and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt.. no children living at home. each stage creates different consumer demands: o o o o o o bachelor stage. no children. o o The Family life cycle: families go through stages.. Membership groups (belong to) Affinity marketing is focused on the desires of consumers that belong to reference . head retired solitary survivor. sororities. attitudes or behaviors of the group members. family has less time for children. retired Modernized life cycle includes divorced and no children. Any group that has a positive or negative influence on a persons attitude and behavior. in labor force solitary survivor. the decision maker within the family unit is changing... civic and professional organizations.. full nest I.

Stores project definite class images. not on welfare Lower-lower class. wealth. reference groups and social classes are all social influences on consumer behavior. 1. Lower class people tend to stay close to home when shopping. the types. • Social Class-an open group of individuals who have similar social rank. tries to disassociate from the "biker" group. 38%. .5%. income. occupation. ethnic groups and possessions. Marketers get the groups to approve the product and communicate that approval to its members.groups. US criteria. from current professionals and corporate elite Upper-middle class.2%. managers and professionals Middle Americans-middle class. quality. Social class influences many aspects of our lives. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group. race. working. on welfare o o o o o Social class determines to some extent. average pay blue collar workers Lower Americans-lower class. aristocratic names. Lower-upper class. 12. newer social elite. 7%. IE upper middle class Americans prefer luxury cars Mercedes. 9%. quantity of products that a person buys or uses. college graduates. • Culture and Sub-culture-- . education.!! Aspiration groups (want to belong to) Disassociate groups (do not want to belong to) Honda. average pay white collar workers and blue collar friends Working class. do not engage in much prepurchase information gathering. Credit Cards etc. All operate within a larger culture. Family. o o Upper Americans-upper-upper class. 32%. US is not a classless society.3%. inherited wealth.

individualism and freedom. Cultural values in the US are good health. Different society. IE change in meals. different cultural values. teenage and Asian American...Tea is a part of the British culture.. how they buy and when they buy. eat. different levels of needs..Culture refers to the set of values.Will British warm up to iced tea? No. hot with milk.. education. In american culture time scarcity is a growing problem. Culture also determines what is acceptable with product advertising. Culture effects what people buy. Culture can be divided into subcultures: o o geographic regions human characteristics such as age and ethnic background. IE West Coast. What is Consumer Behaviour . Culture determines what people wear.. Big impact on international marketing. ideas. Handout. reside and travel. and attitudes that are accepted by a homogenous group of people and transmitted to the next generation.Meaning and Important Concepts inShare3 .but that is my opinion!!.

Maria immediately purchased two dresses but Sandra returned home empty handed. Example . In the above example Sandra and Maria had similar requirements but there was a huge difference in their taste. The store manager showed them the best dresses available with him. In the above examples. What is Consumer Behaviour ? Consumer Behaviour is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use.Tom might purchase a tricycle for his son or Mike might buy a shirt for himself. What is consumer Interest ? Every customer shows inclination towards particular products and services. Why do you think an individual buys a product ?    Need Social Status Gifting Purpose Why do you think an individual does not buy a product ?    No requirement Income/Budget/Financial constraints Taste . mind set and ability to spend. In simpler words a consumer is one who consumes goods and services available in the market. need and of course pocket. The dresses were little too expensive for Sandra and she preferred simple and subtle designs as compared to designer wears available at the store. Let us go through the following example: Both Maria and Sandra went to the nearby shopping mall to buy dresses for themselves. Consumer interest is nothing but willingness of consumers to purchase products and services as per their taste. both Tom and Mike are consumers.Before understanding consumer behaviour let us first go through few more terminologies: Who is a Consumer ? Any individual who purchases goods and services from the market for his/her end-use is called a consumer.

In the same way during Valentines week. social. advertisements. Fluctuations in the financial markets and recession decrease the buying capacity of individuals. a consumer goes through also called selective exposure. The main catalyst which triggers the buying decision of an individual is need for a particular product/service. Consumers purchase products and services as and when need arises. . individuals are often seen purchasing gifts for their partners. economic and so on. In a layman’s language consumer behaviour deals with the buying behaviour of individuals. Following are the sources of information:     Personal Sources Commercial Sources Public Sources Personal Experience Perception also plays an important role in influencing the buying decision of consumers. According to Belch and Belch.When do you think consumers purchase products ?     Festive season Birthday Anniversary Marriage or other special occasions There are infact several factors which influence buying decision of a consumer ranging from psychological. the buying tendencies of consumers increase as compared to other months. Buying decisions of consumers also depend on the following factors:  Messages. a consumer searches for several information which would help him in his purchase. The study of consumer behaviour explains as to:    Why and why not a consumer buys a product ? When a consumer buys a product ? How a consumer buys a product ? During Christmas. promotional materials. whenever need arises.

Consumer interpretation refers to how an individual perceives a particular message. Not all promotional materials and advertisements excite a consumer. He would obviously not remember something which has nothing to do with his need. A consumer does not pay attention to everything he sees. A consumer would certainly buy something which appeals him the most. He is interested in only what he wants to see. He would remember the most relevant and meaningful message also called as selective retention. Such behaviour is called selective attention.   .

Like very small child need toys to play with them and when they grow they need games.Determinants of consumer buying behavior The buying behavior of consumer is affected by a number of factors which are generally uncontrollable. These factors are also known as determinants of consumer buying behavior. the members of different social class has different likings. It includes the persons with whom we interact like friends. perceptions and preferences affect the consumer buying behavior. Decider. in his life. III) Personal factors affecting consumer behavior:1) Age and life style: the consumer buying behavior changes with the change in the age. thus. husband. liking of consumer changes with the age. User. co. 2) Reference group: family alone does not affect the consumer buying behavior but also the group outside the family also affects the consumer behavior. 2) Subculture: the culture includes subculture in it include nationality. father.the person who finally uses the product. II) Social factor affecting consumer behavior:1) Family: the members of family also affect the buying behavior of consumer. 3) Role and status: role played by the person in the society are so many. and communities etc. . religious group. neighbors. All these factors affect the buying behavior of consumer differently. It is the family values. Family includes of:Influencer. I) Cultural factors affecting consumer buying behavior:1) Culture: culture affects a lot the consumer buying behavior. So the consumer buying behavior depends upon the role played by him. businessman etc. brother. which affect the consumer behavior.the person who senses the need to buy a product. Like a person plays the role of son. beliefs. computer etc. 3) Social class: it means to divide the society in different social classes.the person who takes final decision to buy the product.workers etc.

2) Perception: this is how the consumer receives. 5) Personality: personality includes extrovert or introvert which also affects the consumer buying behavior. IV) Psychological factors affecting consumer behavior:1) Motivation: when the buyer’s need is raised to a particular level they become the motives which mean “I want to achieve this” which ultimately affect the consumer buying behavior. 4) Life style: it is the way of living of the person. Thus. attitude means the feeling of buyer towards the object. selects and organizes the information which helps him in buying the goods.2) Occupation: occupation also affects the consumer behavior to buy the goods. So the marketer should keep in mind the beliefs and attitude of the consumer. Like an worker needs simple clothes while his boss needs expensive designer suits to wear. 3) Income: the income also affects the consumer buying behavior because if the person is rich he can buy anything which he wants to buy but for a poor person it is not be easy to buy the things which are beyond his pocket. Like some people like luxury livings while some in simple living. 4) Beliefs and attitude: belief means the opinion or mind set relating to a particular object. all these buying characteristics influence consumer buying behavior. . 3) Learning: learning experience is helpful in affecting consumer buying behavior.

excluding wedding bands. such as jewelry.Vanity purchases occur when a customer buys a product with the intention of using it to enhance or support their perceived personality or. buyers have stated they purchase expensive jewelry so that others will think they are doing well. It should be noted. sports cars.000.000 respondents each quarter) does suggest that there could be good information here. As discussed in this story. It would seem logical that the high-end jewelry business would suffer. As noted in the story. Purchasers are motivated to acquire these products with the express intention of enhancing their image. While the data obtained from convenience sampling is generally not as reliable as data obtained via random sampling. this product category experienced a 10% sales increase between 2007 and 2009. recession. despite a tough economy. What is additionally interesting about some vanity purchases is that these are often viewed as being recession proof. The fastest-growing accessories. as we call it in the Consumer Buying Behavior tutorial. their self concept. From this short list. the information was obtained from a comparative survey of affluent purchasers. however. though many other products also fall into this category such as designer clothing. the size of the sample used in this research (over 1. it would appear they are using convenience sampling. use the information contained in this study to help with their marketing efforts? . However. is the key characteristic of vanity goods. A case in point is men’s high-end jewelry. The motivation for continuing strong purchases in this category. housing and jewelry. Yet.S. this may not seem all that surprising as the target market for high-end jewelry are those earning over $100. these buyers believe perception may be more important than reality. the recession was widely viewed as impacting a large cross-section of the population including high-income consumers. From a consumer behavior perspective. How would a marketer of vanity goods. it is pretty clear vanity purchases skew toward high-end. For some. which includes how they are perceived by others. the height of U. and are most frequently bought by high-income buyers. are bracelets and necklaces — up 23% and 21% respectively. the opposite seemed to happen. expensive offerings. Unity's study found that rings accounted for 51% of men's jewelry purchases made last year. While it is not clear from the research company’s Methodology & Survey Sample Demographics section as to how the survey was distributed. from 2008. The most well known example of this is the personalized license plate.

I am wearing Brand X.Self-Esteem versus Vanity In fashion and beauty. However. we use the two to help us express value in our self." This is what vanity is about . it can become a source of vain behavior and attitudes. It is very easy to get pulled down "vanity lane. Wake up to your wardrobe Find something in your wardrobe that is a true expression of you and your style. As psychologist Nathaniel Branden points out in "The Six Pillars of Self Esteem:" "If my aim is to prove I am 'enough. According to many psychologists. rather than what you feel you should be according to fashion standards. The idea is to nurture your self-esteem and surround yourself with a lifestyle and media that supports it. however. there is a thin line between having good self-esteem and being vain. it's as though the vain person is saying. they are in fact on opposite ends of the spectrum. Here are some ideas to foster healthy self-esteem and challenge your thinking: 1.because the battle was already lost on the day I conceded the issue was debatable.the idea that your worth is debatable. These individuals use fashion and beauty as "proof" of their value. Fashion and beauty can have a huge impact on our self-esteem. In fact.' the project goes on to infinity ." Walking around boutiques and stores and reading the glossy fashion magazines can foster a need to be branded and make you feel inadequate about your own style sense. Good self-esteem simply means positively valuing oneself or having a sense of value or worth. "Look at me. Look how special I am!" They attempt to use certain brands and labels as a way of securing status and acceptability. when the pursuit of fashion and beauty products grows out of control. . vanity or vain behavior is an attempt to MAKE oneself valuable or good enough.

Consider: A spa retreat . If you don't take care of yourself and reward yourself. seeing and admiring yourself in your favorite clothes is reinforcing and positive. Most people consider looking in the mirror as a "vain" act. .with. If you treat yourself like a goddess/god .even a day-spa with beauty treatments galore. rather than undermining yourself and buying into the illusions of vanity. say. Consider: Writing down three things you like about yourself. Discover your body Change your mind about your body image with a yoga class. Next time you look in the mirror. say these things to your reflection. Monitor self-talk It is a well-established fact in psychology that our internal dialogue. Buy a full-length mirror. a moisturizing body wrap . has an enormous effect on how we feel about ourselves. then you could be saying you aren't worth it.then you are saying you have healthy self-esteem. and you will start to feel it come alive in a whole new way. You need to learn how to talk to yourself so that you support your self-esteem. Consider: Taking a yoga class.Consider: Start the morning adorning yourself with what inspires you. or what we say to ourselves about ourselves. Trying out new body techniques allows you to see your body differently. then you will feel inspired about yourself. But if you have good self-esteem. 3. 2. 4. Pamper yourself Nurturing yourself is about giving yourself a treat. caring for your body and rewarding yourself.

Volunteer "Other-esteem" is the necessary and healthy complement to genuine self-esteem. Carole Honeychurch and Catharine Sutker.Reading "Self-Esteem Companion" by Matthew McKay. You need to learn to recognize the needs and intrinsic worth of others as well. Helping others can give you a sense of purpose and contribution. 5. . You also get to meet and network with a new set of people. Patrick Fanning.

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